The Dow Jones Industrial Average fell on Thursday after a surprise jump in the Labor Department’s weekly jobless claims. It came as GameStop ( GME ) plunged after the company fired its CEO and elevated Ryan Cohen to executive chairman.
The latest round of initial jobless claims ahead of the Federal Reserve’s interest rate policy meeting next week showed claims jumping to 261,000 against 232,000 from the previous week. They were expected to increase to 235,000, according to Econoday. Claims reached their highest level since October 2021.
Meanwhile, GME stock plunged 22% Thursday morning. Late Wednesday, GameStop fired CEO Matt Furlong and said its loss per share narrowed to 14 cents, while sales fell to $1.34 billion.
Other important income reports include Smartsheet (SMAR) and Tour (TTC).
Enterprise software firm Smartsheet beat Wall Street targets for its fiscal first quarter, but disappointed on its sales outlook. SMAR shares plunged 20% in early trading. Finally, Toro shares fell more than 4% after the earnings results.
The stock market today
Electric car giant Tesla, already up nine days in a row, rose 0.3% on Thursday morning. Dow Jones technology giants apple (AAPL) and Microsoft (MSFT) traded modestly higher after today’s market opening.
Dexcom (DXCM), Fortinet (FTNT), Kinsale capital (KNSL) and Taiwan Semiconductor (TSM) – as well as Dow Jones stocks Cisco Systems (CSCO), McDonald’s (MCD) and Salesforce (CRM) – is among the best stocks to buy or watch in the stock market trend.
Tesla is an IBD Leaderboard stock, while McDonald’s was featured in this week’s Stocks Near a Buy Zone column.
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Dow Jones today: Oil prices, Treasury yields
After Thursday’s opening bell, the Dow Jones Industrial Average fell 0.1%, while the S&P 500 gained 0.1%. The tech-heavy Nasdaq Composite climbed 0.3% in morning action.
Among U.S. exchange-traded funds, Nasdaq 100 tracker Invesco QQQ Trust ( QQQ ) traded up 0.2%, while the SPDR S&P 500 ETF ( SPY ) rose early Thursday.
The 10-year US Treasury yield fell to 3.77% on Thursday. On Wednesday, the 10-year yield extended a winning streak to four sessions, closing just short of its late-May highs.
The US oil price extended Wednesday’s rise on Thursday morning. West Texas Intermediate futures rose nearly 1% Thursday, moving above $73 a barrel.
Stock market action
The Dow Jones Industrial Average rose 0.3 percent on Wednesday, while the S&P 500 fell 0.4 percent. The technology-heavy Nasdaq composite sold 1.3 percent.
Wednesday’s Big Picture column commented: “In the middle of a confirmed stock market uptrend, you want to see indices rise in higher volume compared to the previous session and fall in lower turnover. Wednesday’s case? It turned out to be a session of serious profit-taking by mutual funds, hedge funds , banks, pension plans and the like.Nasdaq volume jumped 10% while the NYSE saw trading swell nearly 14% compared to Tuesday.
Now is an important time to read IBD’s The Big Picture column following the recent bullish change in the market’s outlook.
Five Best Dow Jones Stocks to Buy and Watch Now
Dow Jones stocks to buy and watch: Cisco, McDonald’s, Salesforce
Dow Jones networking giant Cisco Systems is building a cup base with a buy point of 52.56. Keep an eye out for a potential handle, which is a few trading days away from forming. It would show a previous entry. CSCO shares were down on Thursday.
Dow Jones restaurant giant McDonald’s has fallen below its 10-week moving average, a bearish sign. The stock is trying to hold above the 281.67 buy point from a breakout two months ago. Profits are rapidly diminishing.
While the stock is near a buy point, the action suggests avoiding buying right now. Look for a more bullish rally before considering a stock purchase. MCD stock traded up 0.2% early Thursday.
Salesforce has rallied past alternative entries of 193.91 and 200.00 in recent weeks, according to Leaderboard analysis. Last week, shares hit the 20% profit zone from a 178.94 cup handle entry, but are now retreating. The stock is setting up for a key test of the 50-day line. CRM shares fell on Thursday morning.
4 top growth stocks to watch Stock market rally
Best stocks to buy and watch: Dexcom, Fortinet, Kinsale, TSMC
Dexcom continues to form a flat base with a 126.44 buy point, even after Wednesday’s 4.5% slide, according to IBD MarketSmith’s pattern recognition. DXCM stock lost 0.4% on Thursday.
Insurance leader Kinsale Capital closed Wednesday in 5% buy territory past a 345.75 buy point. The buy zone goes up to 363.04. The KNSL share went down on Thursday.
Monday’s IBD Stock Of The Day, Fortinet, gave up its flat base buy point of 69.07 during Wednesday’s 3.6% drop. The stock rose almost 1 percent on Thursday.
Chip foundry Taiwan Semiconductor bounced 0.5% on Wednesday, in buy territory from a double-bottom 95.82 buy point. The 5% buy range goes up to 100.72. TSM shares fell 1.6% on Thursday morning.
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Best shares to buy and watch in stock market rally
These are the four best stocks to buy and watch in today’s stock market, including a Dow Jones leader.
|company name||Symbol||Right point of purchase||Type of point of purchase|
|ASML||(ASML)||683.18||Cup with handle|
Source: IBD data as of June 6, 2023
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IBD Leaderboard stock Tesla rose 1.5% on Wednesday, moving further out of buy territory beyond a double-bottom buy point at 207.79. Shares closed Wednesday 29% off their 52-week high.
TSLA stock appeared to extend its winning streak, rising 0.3% Thursday morning. The shares are working on a fourth weekly advance in a row.
Dow Jones Leaders: Apple, Microsoft
Among Dow Jones stocks, Apple shares extended a losing streak to three sessions, down 0.8% on Wednesday. The stock reached a record high of 184.95 on Monday. The stock continues to hold sharply above a buy point of 157.38 and is outside the buy range that went up to 165.35. AAPL shares rose 0.4% in early trading Thursday.
Microsoft shares sold off 3.1% on Wednesday, closing at their lowest level since May 24. Earlier this week, MSFT stock reached the 20%-25% profit zone from a buy point at 276.76, so investors could have taken at least some profit there. On Thursday morning, the MSFT share was up 0.4%.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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